The higher council of the Egyptian armed forces are meeting and are expected to release an "important" statement later on Thursday, state television reported.
The meeting was discussing the nationwide protests ahead of a planned "1-million-strong rally" on Friday calling for President Hosni Mubarak and his government to resign.
In an exclusive interview to the BBC Arabic service, Prime Minister Ahmed Shafiq said that the scenario of Mubarak stepping down was being discussed.
A leading member of the ruling National Democratic Party also said Mubarak may make a speech sometime Thursday evening.
Egypt's powerful military has been on the streets of Cairo and other major cities since January 28, keeping a largely neutral profile.